By Nora Naughton and Mike Colias 

Contract talks between General Motors Co. and the United Auto Workers labor union stalled Sunday morning after making some progress heading into the weekend with new-hire pay, job security and other issues still in contention.

In a Sunday letter to union members, Terry Dittes, the UAW's top bargainer for GM, said talks with the company had taken "a turn for the worse" in part because the union says GM reverted back to a previously rejected proposal with only minor changes.

"The company's response did nothing to advance a whole host of issues that are important to you and your families!," Mr. Dittes wrote in the letter. "It did nothing to provide job security during the term of this agreement."

A GM spokesman said "We continue to negotiate in good faith with very good proposals that benefit employees today and builds a stronger future for all of us. We are committed to continuing discussions around the clock to reach a resolution."

Mr. Dittes said the union presented GM with a comprehensive proposal that addressed wages, job security, pensions, profit-sharing and other topics Saturday evening, only to receive the company's counter offer Sunday morning.

The deadlock is the latest sign the now 21-day strike at GM is likely to continue into a fourth week, extending a nationwide walkout that is already the longest at the company since 1970. The work stoppage has halted factory output at more than 30 U.S. plants, stifled production for auto-parts suppliers, resulted in temporary layoffs for thousands of non-UAW factory workers and stopped all of GM's pickup truck production in North America.

As of Saturday, the biggest remaining issues on the table were shortening the eight-year time period it takes for a new worker at GM to reach full pay of about $30 an hour and providing enhancements to workers' pensions and 401(k) contributions, according to people close to the talks.

The disparity in pay between veteran workers and newer hires has long upset the union, which has fought for equal pay among members working in auto factories. New hires start out at about $17 an hour and get yearly raises until they reach full pay.

Write to Mike Colias at Mike.Colias@wsj.com

 

(END) Dow Jones Newswires

October 06, 2019 13:14 ET (17:14 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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